Question

Problems (60%) The following information is available for the Jones Company for its Oct. 31 bank reconciliation: from the Oct. 31 bank statement: 1. Previous Balance $17,658 Total Checks and Debits Total Deposits and Credits Current Balance 9,355 $14,005 $22,308 Checks and Debits Deposits and Credits Daily Balance Date No Date 10/01 Amount 10/03 18741,210 10 10/02 10/27 10/31 5,340 850 170 10/25 1909725 2,650 7,658 22,998 21,788 18,938 18,768 1906 1905 10/02 10/03 10/15 o8,270 395 IN 10/29 1908 0/15 10/25 10/27 10/29 750 NSF 17,043 25,313 22,663 10/30 10/31 21.913 22,308 NSF: IN: A check from a customer, ABC Co. in payment of their account. Interest earned on the account. Alt Alt

Answer 1

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Although format is not available, a common format has been used Bank Reconciliation Naming covention can be slightly differnet per question format: Solution: a) Updates to Bank Statement Bank Statement balance Addtions Updates to Companv's Books $22,308 Book balance $18,303 Addtions Deposit in transit $ 4,090 Interest Earned $ 395 Deductions: Deductions: Outstanding checks (2150+1460+4840 -8,450 NSF Check $-750 Adjusted Bank Balance 17,948 Adjusted Book Balance $17,948 b) Journal Entries Date Account title and explaination Debit Credit $ 395 Aug.31 Cash Interest Revenue $ 395 To record the interest revenue) Aug.31 Accounts Receivable $750 Cash S 750 To record the NSF Check)